ACL Contract Electronics Manufacture

Innovation . Design . Manufacture

Celebrating 27 years of excellence

Welcome to the Assembly Contracts Quarterly Report

With this report we aim to inform our industry colleagues of any relevant news, component lead-time updates and market conditions that may affect the manufacture of your product, or the electronics industry as a whole.
With ACL, Manchester, as your partner you receive unsurpassed manufacturing quality, delivered on time every time by our IPC trained & experienced workforce.

We now offer a 3-Year workmanship warranty as standard at no extra charge.

Our sophisticated, bespoke, written in-house, purchasing, QA, and production control software is continuously modified in response to market changes.

Materials are always purchased and products are manufactured well in advance of delivery dates, giving you peace of mind.
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I hope you find the following informative. Please feel free to get in touch if you have any questions or comments.

ACL News

Our latest updates to Stock control have further improved our flexibility and move us closer to new approvals we are seeking

Supply Chain & Manufacturing

Upon the announcement of the referendum result last quarter we reported no immediate effects to the supply chain, either for lead times or for pricing. The same cannot be said for this quarter as the pound struggles against other currencies in the aftermath. We are already seeing suppliers react to the pressures on the pound as they take instant action, passing currency fluctuations directly to manufacturers and raising base prices ahead of further lows. Whilst Article 50 is yet to be triggered, markets appear to be erring on the side of caution amid fears that Brexit will be messier and costlier for the economy than expected.

One positive for the weakened pound is that UK manufacturing again grew this quarter at its fastest pace in more than two years, as new orders from Asia, Europe and the USA were seen. The Purchasing Managers Index (PMI) rose to 55.4 in September from 52.1 in August. A figure above 50 indicates expansion in the sector.

September saw Chinese manufacturing activity contract for the second consecutive month raising expectations of rate cuts from the central bank. PMI read 49.8 in September after 49.7 in August. The impact on its economy is visible with growth at its slowest annual rate in 25 years.

UK & Global Trends

Whilst last quarter was dominated by concerns over the referendum result, this quarter has been focussed on the type of Brexit May will back. The annual conference this week supported fears of a ‘hard’ Brexit as the government appears to move closer towards a strategy which will restrict access to the EUs single market in an attempt to control immigration.

GBP has hit 3 year lows against the EUR this quarter and although recovered somewhat in the wake of the PMI report the single currency continues to make ground against the pound. Sterling has also hit 31 year lows against the dollar.

The pound continues to slide with losses over 1% in the last 24 hours alone.

Please find enclosed ACL's brochure together with a component pricing and lead time breakdown.

If you would like to discuss any manufacturing requirements please don't hesitate to get in touch with me.
Arthur Woode
Director
0161 947 8000
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